This video explains Simon Høiberg's "perfect stack" for SaaS development using AI, emphasizing how AI can now generate 90% of his code. He outlines a three-layer approach: vibe coding with Lovable for initial design and prototyping, agent-based coding with GitHub Copilot for asynchronous development, and AI-assisted coding using tools like Cursor or VS Code extensions for real-time collaboration with AI. The goal is to enable faster feature development and allow even non-technical founders to build SaaS solutions.